Ditch the Beta: Why AI is the New Cost of Capital King (And Why Your CFO Should Care)
Corporate financial strategy hinges on the ability of management to make optimal investment decisions, typically defined by two primary rationales: maximizing profit and/or maximizing market value. An asset should only be acquired if the expected rate of return surpasses the interest rate (profit maximization) or if the cost of acquisition is less than the value it adds to the corporation’s market value
Artificial Intelligence and the Evolving Landscape of American Capitalism
The advent of Artificial Intelligence (AI) is poised to significantly reshape the landscape of American capitalism, presenting both transformative opportunities and considerable challenges. As AI technologies become increasingly sophisticated and integrated into various sectors of the economy, it is crucial to analyze their potential impacts on market dynamics, labor, social welfare, and the broader ideological discourse surrounding capitalism itself. This essay will explore the potential benefits and drawbacks of AI's influence on American capitalism, delve into the question of oligopolies and monopolies in the age of AI, and consider how AI might affect the growing popularity of socialist ideas in the United States.